Zacks Industry Outlook Highlights: McDonald's, Brinker International, Panera
Bread, AFC Enterprise and Krispy Kreme Doughnuts
CHICAGO, Feb. 6, 2013
CHICAGO, Feb. 6, 2013 /PRNewswire/ --Today, Zacks Equity Research discusses
the U.S. Restaurants, including McDonald's Corp. (NYSE:MCD), Brinker
International Inc. (NYSE:EAT), Panera Bread (Nasdaq:PNRA),AFC Enterprise
(Nasdaq:AFCE) and Krispy Kreme Doughnuts, Inc. (NYSE:KKD ).
A synopsis of today's Industry Outlook is presented below. The full article
can be read at
The year 2012 started on a relatively positive note for U.S. restaurants. That
scenario changed gradually as sales momentum slackened in the sector as the
macroeconomic tension, presidential election and the "Fiscal Cliff" raised
uncertainties in the market.
Even this year, the industry remains on the receiving end of global economic
concerns, fragile consumer confidence, a more expensive food cost environment
in the U.S., a sluggish labor market, "Obamacare" and an excess of restaurants
in the industry. As a result, we anticipate subdued store sales growth in the
Statistics also bear out this relatively unfavorable environment. A recent
survey by the National Restaurant Association revealed that the Restaurant
Performance Index (RPI), measuring the present condition and outlook on the
U.S. restaurant industry, was 99.7 in December, down 0.2% sequentially. The
figure dropped from the steady-state score of 100.
The Current Situation Index, which measures comparable store sales, traffic
count, labor costs and capital expenditures in the restaurant industry, was
99.1 in December, down 0.7% sequentially. This was the fifth below-100 score
in six months and the lowest level in almost two years. However, the
Expectations Index, which measures the restaurant operators' six-month outlook
on the above indicators, was 100.3, up 0.3% from November.
This RPI number connotes that the industry is stressed. Weak sales momentum, a
sluggish labor market and slowdown in capital spending suppressed the Current
The Expectations Index managed to beat the safety threshold of 100 for the
first time in three months, but the score still reaffirms operators' bearish
outlook on the industry over the near term.
Performance of Key Players in Fourth-Quarter 2012
So far, industry behemoth McDonald's Corp. (NYSE:MCD) delivered
stronger-than-expected results in the fourth quarter while another renowned
operator -- Brinker International Inc. (NYSE:EAT) -- posted in-line earnings.
However, most of the company's results are yet to release.
A look at the Earnings ESP (Expected Surprise Prediction - Zacks' proprietary
methodology for determining which stocks have the best chance to surprise with
their next earnings announcement) shows that the overall earnings picture for
the industry remains mixed. To beat the estimate, a stock needs to have both a
positive Earnings ESP (Read: Zacks Earnings ESP: A Better Method) and a Zacks
Rank #1, #2 or #3.
Among the leading players of the industry, Panera Bread (Nasdaq:PNRA),AFC
Enterprise (Nasdaq:AFCE) and Krispy Kreme Doughnuts, Inc. (NYSE:KKD ) will
likely beat fourth-quarter earnings.
Zacks.com is a property of Zacks Investment Research, Inc., which was formed
in 1978 by Leonard Zacks. As a PhD from MIT Len knew he could find patterns in
stock market data that would lead to superior investment results. Amongst his
many accomplishments was the formation of his proprietary stock picking
system; the Zacks Rank, which continues to outperform the market by nearly a 3
to 1 margin. The best way to unlock the profitable stock recommendations and
market insights of Zacks Investment
Research is through our free daily email newsletter; Profit from the Pros. In
short, it's your steady flow of Profitable ideas GUARANTEED to be worth your
time! Register for your free subscription to Profit from the Pros at
Visit http://www.zacks.com/performance for information about the performance
numbers displayed in this press release.
Follow us on Twitter: http://twitter.com/zacksresearch
Join us on Facebook: http://www.facebook.com/ZacksInvestmentResearch
Disclaimer: Past performance does not guarantee future results. Investors
should always research companies and securities before making any investments.
Nothing herein should be construed as an offer or solicitation to buy or sell
Zacks Investment Research
800-767-3771 ext. 9339
SOURCE Zacks Investment Research, Inc.
Press spacebar to pause and continue. Press esc to stop.